What is the correct meaning of profit in business?
Answer and explanation
Correct answer: The amount left after subtracting total cost from total income
Profit is the positive surplus remaining when total revenue or income exceeds the total costs incurred to earn it. In simple form, profit equals total revenue minus total cost; if the result is negative, it is a loss rather than profit. Total cost, borrowed money, and number of sales are different financial or operating measures. Therefore, option A is correct.
Frequently asked questions
What is the correct answer to this question?
The amount left after subtracting total cost from total income
Why is this the correct answer?
Profit is the positive surplus remaining when total revenue or income exceeds the total costs incurred to earn it. In simple form, profit equals total revenue minus total cost; if the result is negative, it is a loss rather than profit. Total cost, borrowed money, and number of sales are different financial or operating measures. Therefore, option A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Concept, characteristics and objectives of business.
